Liquefied Petroleum Gas (LPG) Stakeholders Freight have
lamented non implementation of tax waiver on imports of cooking gas by the
Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi.
It would be recalled that President Bola Ahmed Tinubu had
over one week ago, ordered an exemption of Value Added Tax (VAT) for LPG
imports to crash down the soaring prices of cooking oil in the country.
Stakeholders in the industry are therefore, asking the
customs chief to explain the rationale for the alleged lethargic implementation
of the directive.
Other items exempted from VAT and duty payment are LPG
cylinders, cascades, gas leak detectors, steel pipes, valves and fittings,
dispensers, gas generators, and trucks.
Freight Chairman, Kabir Babawale told reporters yesterday
after an emergency meeting of the LPG group.
Alhaji Babawale said the Customs boss should explain to
Nigerians the reasons behind his alleged refusal to comply with the directive
of the presidency.
He noted that the LPG storage tanks of many of his members
under the code of 73111.00.00.00 are
lying helpless at the ports with increasing demurrage on daily basis, adding,
"will the Customs pay for the demurrage now that it has refused to obey
the directive of the Presidency? We are anxiously awaiting the implementation
of this directive."
Babawale, while thanking the Presidency for its proactive
decision on the exemption order believed that the development would boost the
Gas Economic Policy of the government and ease off the excruciating costs of
domestic cooking gas in the country.
He said: "As investors, we are ready to commit more into
the business, but before then, we are anxiously awaiting the implementation of
this directive. Or can we begin to insinuate that there is a parallel body to
the Federal Government in Nigeria?"
Recall that in a move aimed at making cooking gas more
affordable for Nigerians, the Federal Government had few days ago announced the
exemption of the LPG imports from VAT and customs duty.
This decision, communicated through a letter from the
Ministry of Finance, is expected to significantly reduce the cost of cooking
gas for households and businesses across the country.
The Federal Government had decided to waive customs duty and
VAT on importing the commodity and its accessories to crash the price of the
LPG nationwide.
The report said the Ministry of Finance conveyed the decision
in a letter dated November 28, 2023, and addressed to several officials,
including the Special Adviser to the President on Energy, the Comptroller
General of Customs, and the Chairman of the Federal Inland Revenue Service
(FIRS). The Minister of Finance, Wale Edun, signed the letter.
The letter partly reads: “In line with His Excellency,
President Bola Tinubu’s commitment to improving the investment climate in
Nigeria, increasing the supply of LPG to meet local demand, reducing market
prices, and promoting clean cooking practices, I hereby affirm Presidential
directive dated July 29, 2022, with reference number PRES/88/MPR/99.”
The letter also directed Nigeria Customs to comply with the
presidential directive of July 29, 2023, and withdraw all debit notes issued to
oil marketers who have imported the product, using codes 2711.1.200.00 and
?2722.13.00.00 from August 26, 2019, to the present.
Leave Comments